United Kingdom (and EU regulation)

ESRB risk dashboard – issue 7

The European Systemic Risk Board has published its latest risk dashboard (issue 7).

The headlines in the risk dashboard are:

the EU macroeconomic environment is slowly improving;
labour market conditions have improved for a number of stressed EU countries;
countries’ levels of indebtedness are likely to weigh on the recovery. While the deficit-to-GDP ratio is projected to fall below the 3% benchmark in 2014, public debt levels continue their ascent and approach 90% of GDP for the EU as a whole;
financial conditions continue to improve. Sovereign debt markets continue to stabilise, including for stressed countries; and
the price/earnings ratio of EU banking sector equity fell by one third over the last quarter of 2013 as a number of banks from stressed economies are returning to profit.